Synopsis:
Clean Science & Technology posted a mixed Q1 FY26, with revenue and profit declining sequentially but improving modestly Year-on-Year. The stock fell nearly 8 percent as investors remained cautious about the company’s short-term growth, despite its strong cash reserves and zero debt.
One of India’s leading specialty chemical manufacturers came under market pressure today following the release of its Q1 FY26 earnings. Despite posting modest year-on-year growth, the company’s sequential decline in revenue and profitability triggered muted investor sentiment, reflecting concerns over near-term demand softness and margin stability.
The company in focus is Clean Science and Technology Limited, with a market capitalization of Rs. 14,365 crore. The stock opened today at Rs. 1,399, lower than its previous close of Rs. 1,445.20, and touched an intraday low of Rs. 1,332.40. This marks a decline of approximately 7.81 percent from the previous closing price, reflecting a cautious market reaction to the earnings report.
What’s the News?
On a Quarter-on-Quarter basis, Clean Science reported a revenue from operations of Rs. 243 crore for the quarter ended June 2025, down 8 percent from Rs. 264 crore recorded in March 2025. Operating profit declined by 4.8 percent from Rs. 105 crore to Rs. 100 crore. Profit before tax fell by 5 percent, from Rs. 100 crore to Rs. 95 crore, while net profit decreased by 5.4 percent, slipping from Rs. 74 crore to Rs. 70 crore.
On a Year-on-Year basis, the company’s performance reflected moderate growth. Revenue increased by 8.5 percent from Rs. 224 crore in Q1 FY25 to Rs. 243 crore in Q1 FY26. Operating profit rose by 5.3 percent from Rs. 95 crore to Rs. 100 crore. Profit before tax improved by 6.7 percent from Rs. 89 crore to Rs. 95 crore. Net profit grew by 6.1 percent from Rs. 66 crore to Rs. 70 crore. The company also maintained a robust operating profit margin of 41 percent for the quarter.
In terms of revenue segmentation, performance chemicals continued to dominate the mix, contributing 74 percent in Q1 FY26 compared to 70 percent in the same period last year. The share of pharma and agro intermediaries slightly declined to 16 percent from 17 percent, while FMCG chemicals accounted for 10 percent, down from 13 percent. Geographically, India led with a 39 percent contribution, followed by China at 20 percent, the Americas at 18 percent, Europe at 14 percent, and the rest of the world contributing 9 percent.
The company has also announced that the final dividend will be paid to equity shareholders whose names appear in the register of members as of Thursday, 4th September 2025, which has been set as the record date. The dividend payout is scheduled for Friday, 26th September 2025.
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Financial Snapshot & Others
Incorporated in 2003, Clean Science and Technology Limited is a leading manufacturer of fine and specialty chemicals. The company is globally recognized for developing innovative and sustainable manufacturing technologies and is among the top producers of several specialty chemicals developed internally. Clean Science’s commitment to research and process innovation supports its position in global markets, making it a key player in the specialty chemicals space.
Clean Science remains debt free with a Debt-to-Equity ratio of zero, reflecting a strong balance sheet. The company’s Return on Capital Employed (ROCE) is 27.2 percent, Return on Equity (ROE) stands at 20.2 percent, and Return on Assets (ROA) is 17.6 percent. The stock trades at a P/E ratio of 53.4.
Total assets increased by approximately 15 percent from Rs. 1,396 crore in March 2024 to Rs. 1,608 crore in March 2025. Investments rose from Rs. 339 crore to Rs. 381 crore, and net cash flows turned positive at Rs. 10 crore. FII holding has marginally increased from 6.07 percent in March 2025 to 6.21 percent in June 2025.
Written by -Manan Gangwar
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